U.S. Bank is ending the wholesale mortgage business at newly acquired MUFG Union Bank, making it the latest player in the space to pull back amid the market's decline this year.
The large Minneapolis-based depository made the announcement shortly after
"This decision is consistent with the strategy U.S. Bank embarked on several years ago to focus more on Retail, Correspondent and HFA lending," the company said in a statement this week to clients.
The company said it communicated the decision as soon as possible to impacted employees, although it did not confirm whether layoffs would occur.
The last day to register loans is Dec. 14, loans will be funded through Feb. 17, 2023, according to the announcement.
Independent mortgage banks small and large have exited wholesale operations in the past few months, including
U.S. Bank itself exited the wholesale channel in 2017. It
The acquisition of New York-based Union Bank, with nearly 300 branches on the West Coast, is expected to add roughly 1 million consumers to the depository, along with 190,000 small business clients and approximately 700 corporate customers.
Once the customer conversion has been completed, U.S. Bank will also begin a